Informatica Investor Presentation Deck

Released by

38 of 49

Category

Technology

Published

April 2022

Slides

Transcriptions

#1Investor Presentation First Quarter 2022 Ended March 31, 2022 April 27, 2022 Informatica#22 Safe Harbor and Statement Regarding Use of Non- GAAP Financial Measures This presentation contains forward-looking statements about Informatica and the environment in which Informatica operates. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, market size and growth opportunities, the calculation of certain of our key financial and operating metrics, capital expenditures, plans for future operations, competitive position, technological capabilities, and strategic relationships, as well as assumptions relating to the foregoing. Such statements are subject to known and unknown uncertainties and contingencies outside of Informatica's control and are largely based on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Informatica's actual results, events, or circumstances may differ materially from these statements. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," “may," “plan," "potential," "predict," "project," "should," "target," "will," "would," or similar expressions and the negatives of those terms. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation may not occur, and actual results, performance or achievement could differ materially from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. Except as required by law, Informatica does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Informatica. Proprietary. Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release ar included under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K that was filed for the fiscal year ended December 31, 2021, that was filed on March 24, 2022 and other filings and reports we make with the Securities and Exchange Commission ("SEC") from time to time, including our Quarterly Report on Form 10-Q that will be filed for the first quarter ended March 31, 2022. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, unlevered free cash flow, unlevered free cash flow margin, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, and non-GAAP operating loss (income). These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures used by Informatica may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most directly comparable U.S. GAAP measure is included in the Appendix to this presentation. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. Unless otherwise indicated, all references in this presentation to "Informatica," "we," "our," "us," or similar terms refer to (i) Ithacalux Topco S.C.A. and its consolidated subsidiaries for the periods prior to the completion of certain restructuring transactions and (ii) Informatica Inc. and its consolidated subsidiaries for the periods subsequent to the completion of such restructuring transactions. Informatica®#33 Business Highlights O Informatica. Proprietary. Informatica#44 Informatica at a Glance - Q1'22 Growth at Scale $1.4B Q1 2022 Total ARR¹ 17% Q1 2022 YOY Total ARR Growth Large, Growing Customer Base $44B TAM Estimate4 High Growth Subscription ARR $849M Q1 2022 Subscription ARR² 32% Q1 2022 YoY Subscription ARR Growth Customers with $1M+ in Subscription ARR³ 164 50% Q1 2022 YOY Growth 1 Annual Recurring Revenue represents the expected annual billing and revenue amounts from all active maintenance and subscription agreements 2 Subscription ARR represents the portion of ARR only attributable to our subscription contracts 3 Cloud ÁRR represents the portion of ARR that is attributable to our hosted cloud contracts 4 Total Addressable Market is an internal Informatica estimate based on the potential ARR per company times the total number of companies that we could sell to globally 5 Customers that spend more than $1 million in subscription ARR 6 Unlevered free cash flow margin is a non-GAAP financial measure. See appendix for reconciliation to most directly comparable GAAP measure Informatica. Proprietary. Cloud Differentiation $343M Q1 2022 Cloud ARR 3 43% Q1 2022 YOY Cloud ARR Growth Proven Margins and FCF Generation 24% Q1 2022 Unlevered Free Cash Flow Margin (after-tax)6 Informatica#55 Q1'22 Business Highlights Product Innovation: Expanded partnership with Snowflake that will result in deeper, product integrations for data governance, acceleration and scaling of joint marketing and demand-generation activities, and expanded field sales collaboration. Launched the Informatica Intelligent Data Management Cloud (IDMC) for Retail - a cloud-neutral, end-to-end data management solution for the retail industry to drive innovation and business value in a multi-cloud, hybrid environment. Launched the multi-tenant cloud Informatica Intelligent Multi-domain Master Data Management (MDM) for enterprises to connect, understand and manage the relationship between multiple domains such as location, customer, product, or supplier as well as assets including loT devices or sensors. Expanded global system integrator partnership with Wipro Limited to accelerate cloud modernization for global customers. Industry Recognition: Named to Fast Company's Annual List of the World's 50 Most Innovative Companies for 2022. Informatica ranked #2 in the competitive enterprise category. Named a 2022 Gartner Peer Insights Customers' Choice for Data Integration Tools, making Informatica the only vendor to receive this accolade four consecutive times. Recognized as an Overall Leader in KuppingerCole Leadership Compass Data Catalogs and Metadata Management Report. Recognized as a Champion in the Bloor Stream Processing Market Update. Informatica. Proprietary. Informatica#66 A Leader in Four GartnerⓇ Magic Quadrant Reports Informatica is placed highest in ability to execute in ALL of these Magic Quadrant Reports Enterprise Integration Platform as a Service Figure 1: Magic Quadrant for Enterprise Integration Platform as a Service ABILITY TO EXECUTE CHALLENGERS Topic- Takind Celi gamit WICHE PLAYERS COMPLETENESS OF VISION Source: Gartner (September 2021) Have Mulo O THEO for LEADERS ●SAP ●Oracle Jett Software AG Spige ●EM VISIONARES As of September 2021 Sep 2021 Eric Thoo, et al., 29 Sep 2021 Gartner, Inc Data Quality Solutions Figure 1: Magic Quadrant for Data Quality Solutions CHALLENGERS Redpoint NICHE PLAYERS Innovative System Experian COMPLETENESS OF VISION Source: Gartner (September 2021) Melissa Data Datactics Precisely ofensh Sy MOset LEADERS SAS Talend Atacama As of August 2021 ●SAP Sep 2021 Melody Chien, et al., 29 Sep 2021 informatica BM Gartner, Inc Master Data Management Solutions Figure 1: Magic Quadrant for Master Data Management Solutions Contertur Wsu Vamedo CHALLENGERS NOHE PLAYERS COMPLETENESS OF VISION Source: Gartner (December 2021) Sabo Systane "O EMO SAP Atacima Ret Semanhy TECO Software sand LEADERS VISIONARIES As of July 2021 Dec 2021 Simon Walker, et al., 6 Dec 2021 Gartner, Inc TM Data Integration Tools Figure 1: Magic Quadrant for Data Integration Tools Clover Sale Sofwar Adept MA NICHE PLAYERS COMPLETENESS OF VISION Source: Garmer (August 2021) Ok. SAS TCO Schwar ● Mosch LEADERS Decade Talend ●Shipkoge ●E VISIONARES As of June 2021 Aug 2021 Ehtisham Zaidi, et al., 25 Aug 2021 Gartner, inc These graphics were published by Gartner, Inc. as part of larger research documents and should be evaluated in the context of the entire document. The Gartner documents are available upon request from Informatica. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER and Magic Quadrant are registered trademarks and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Informatica Informatica. Proprietary.#77 Product Innovation Led Transformation Journey anl Kept Traditional data integration product (PowerCenter) separate Built net new products on a new cloud-native multi-hybrid platform (IDMC) Drove subscription growth by selling net new products on IDMC for next-gen workloads across Analytics, Data Governance & Privacy, and Business 360 Next-gen workloads powered by cloud that is growing much faster Migration not part of current growth; future growth continues to be from cloud powered next-gen workloads; migration is a medium-term incremental upside 1 Metric as of Q1 2022 O Informatica. Proprietary. 32% YoY Subscription ARR growth¹ 85% of Subscription ARR from new products¹ 43% YoY Cloud ARR growth¹ 2% of installed base has migrated to cloud Informatica#88 Pioneering a New Layer in the Enterprise Data Stack Application Cloud Salesforce | Oracle | SAP | Adobe | ServiceNow | Coupa | Workday | Apptio INFRASTRUCTURE Data Cloud nowflake | Amazon Redshift | Google Big Query | Azure | Databricks Informatica. Proprietary. CO INTELLIGENT DATA MANAGEMENT CLOUD DATABASES Database Cloud Microsoft SQL Azure | MongoDB | Oracle | | Amazon Aurora MULTI-HYBRID DATA WAREHOUSE BUSINESS INTELLIGENCE TOOLS Infrastructure Cloud Azure | Amazon | Google Cloud | Oracle Rackspace CUSTOM APPS Analytics Cloud Tableau | ThoughtSpot | Power BI PACKAGED APPS Informatica#99 IDMC - Details of Cloud-Native Platform Best of Breed Products tr('data #[^\s]+$)/, Mass('caroA')) extend($target.dat Intelligence & e Automation options) Metadata System of Record Informatica. Proprietary. DATA INTEGRATION aws API & APP INTEGRATION Intelligent Data Management Cloud SaaS Microsoft DATA QUALITY 00 MASTER DATA MANAGEMENT CLAIRE Al-Powered Metadata Intelligence & Automation Connectivity Metadata System of Record CUSTOMER & BUSINESS 360 Google Cloud DATA CATALOG Self-Managed Hybrid GOVERNANCE & PRIVACY Enterprise Cloud Informatica#1010 Automate Anything Proactive and Strategic Data Management Enterprise Metadata Growth CLAIRE™ Petabytes of Active Metadata 11 Smarter Recommendations, Greater Automation Informatica. Proprietary. Continuous Scanning of Transactions, Configurations, Decisions Al-Powered Intelligence Google-like search Amazon-like recommendations Social-graph of data Democratization of data Natural Language Processing to create rules Intelligent and automated match, merge and consolidation Informatica#1111 Single Platform - Multiple Customer Journeys Analytics ◆ Cloud data warehouses ◆ Data lakes Analytical workloads Operational workloads O Informatica. Proprietary. K Application Integration & Hyperautomation ◆ Application Integration and Modernization Business Automation ◆ API Governance Business 360 Applications ◆ Customer experience ◆ Digital supply chain Single view - any entity ge Data Governance & Privacy ◆ Data governance ◆ Data privacy ◆ Data democratization Informatica#1212 Next-gen Enterprise Data Architecture Hybrid SaaS Cloud loT 2009 LO Data Ingestion amazon S3 Informatica. Proprietary. Landing Zone Stream Processing CLOUD DATA LAKE Data Integration Data Quality Azure Data Lake Storage Gen2 Google Cloud Storage Data Enrichment snowflake databricks Enterprise Zone Storage Elastic Compute - Spark kafka Google Cloud Pub/Sub Data Integration API & Application Integration Data Catalog Governance and Privacy CLAIRE: Intelligence and Automation amazon KINESIS are Ever Hubs Acure B Stream Storage Customer & Business 360 MDM Cloud Data Warehouse amazon REDSHIFT snowflake Q Amazon SageMaker Google BigQuery Azure Synapse Analytics Data Science / Al Azure Machine Learning Data Delivery and Marketplace Business User Data Analyst Line of Business Data Engineer Data Scientist Governance Manager IDMC Informatica#1313 Neutral and Scaling Across the Cloud Ecosystem 0.2 Trillion TRANSACTIONS PER MONTH IN 2015 salesforce Informatica. Proprietary. snowflake 10040 010110Y salesforce 1000110 32+ Trillion Microsoft **** TRANSACTIONS PER MONTH TODAY Google Cloud +ableau aws databricks Informatica#1414 Large and Expanding Addressable Market $31B 2021 TOP-DOWN TAM +16% CAGR Informatica. Proprietary. $56B 2025 BOTTOMS-UP TAM # Addressable Companies Globally X IDC Worldwide Data Integration and Intelligence Software Forecast, 2021-2025 (June 2021, US #US46382521) IDC Worldwide Business-to-Business Integration Middleware and Managed File Transfer Software Forecast, 2021-2025 (July 2021, #US46382421) IDC Semiannual Software Tracker, 2020H2, May 13, 2021 IDC Worldwide Master Data Management Competitive Software Forecast, 2019-2023 (July 2019, IDC #US45331719) extrapolated by IDC through 2025 IDC Worldwide Data Privacy Management Software Forecast, 2021-2025 (IDC #US47676821) Potential All-Product ARR per Company, Assuming Cloud Migration $44B Informatica#1515 Market Landscape COMPETITION talend IBM PARTNERSHIPS snowflake aws Informatica. Proprietary. Collibra SAP Microsoft salesforce Google Cloud databricks WHY INFORMATICA? HOME-GROWN / MANUAL Multi-cloud, hybrid interoperability Ease of Deployment and Scale ◆ Performance, Reliability and Security POINT SOLUTIONS Comprehensive Platform, Best-of-Breed Products ◆ Strength of Cloud Ecosystem Partnerships Support for Full Breadth of Data Practitioners STACK VENDORS Advanced AI and Machine Learnings Elasticity and Ability to Quickly Scale Services Responsiveness to Evolving Customer Needs & Use Cases CLOUD PARTNERS Independence and Neutrality Strong Partnerships Informatica#1616 Strategic Hyperscaler and GSI Partnerships ECOSYSTEMS snowflake Google Cloud aws KPMG SOFTWARE + ableau databricks accenture Cognizant GLOBAL SYSTEM INTEGRATORS O Informatica. Proprietary. Microsoft tcs salesforce TATA CONSULTANCY SERVICES Capgemini Deloitte. wipro Strategic relationships with 3 leading cloud hyperscalers - AWS, Microsoft Azure, GCP Snowflake and Azure Data Lake Partner of the Year (2020) Availability on marketplaces Dedicated Informatica practice Co-create and co-sell solutions to solve customer needs Combine power of innovation and services Informatica#17Customer Leadership - Global and Across all Key Verticals Technology / Services Auto / Transportation ASTON MARTIN TOYOTA Ford Audi MAERSK STATE AF Australian Government Australian Taxation Office FDOT KOMTAS REVENUE OFFICE VICTORIA UNITED STATES AIR FORCE ACADEMY P HONDA AVIS Govt. / Public Sector / Edu. M MITSUBISHI ELECTRIC Changes for the Better MAINE SUBARU U.S. Customs and Border Protection NISSAN easyJet 国家电网公司 STATE GRID CORPORATION OF CHINA Ministerie van Defensie Queen's Department for Work & Pensions Banking / Insurance stripe PayPal = SoftBank BNY MELLON Flagstar MetLife RBS charles HBL SCHWAB Deutsche Bank Bancorp, Inc. WELLS FARGO mastercard BNP PARIBAS JANUS CAPITAL Group M&T Bank Bank of New Zealand SANOFI Lilly Lincoln Financial Group UNITEDHEALTH GROUP Anthem BlueCross BlueShield Johnson & Johnson (AOR) Nationwide JPMORGAN CHASE & CO. AIP :F HARBOURVEST Healthcare / Pharma THE REAL LIFE COMPANY HAINBANK Goldman Sachs Santander Pfizer Genentech A Member of the Roche Group D AmerisourceBergen Cleveland Clinic PROVIDENCE Health & Services PELOTON amazon Unilever Hello FRESH MATTEL Retail Coca-Cola P&G PPG Kroger H-E-B DANONE Raytheon ¹ As of Q1 2022 ² Net retention rate is calculated by dividing the aggregate Subscription ARR in the current period by the prior year period 3 As of April 2022 17 Informatica. Proprietary. LOWE'S Manufacturing PACCAR EATON ebmpapst TATA STEEL adidas TIFFANY & Co. Peet's Coffee Kiewit Your Claimstat Connection YZTC Yangtze Memory Technologies KM muRata INNOVATOR IN ELECTRONICS twitch Cognizant amazon Enel xp CISCO accenture Energy / Utilities salesforce Bloomberg genesis WESTNETZ MITSUBISHI CHEMICAL ENEOS enel eDF JEA BHP Trust power. nationalgrid 113% Subscription Net Retention Rate¹,2 85 of Fortune 100³ 55% of Subscription Customers are Net New¹ 164 >$1M Subscription ARR Customers¹ 5,000+ Customers¹ Informatica®#1818 Our Competitive Moat se E Al embedded, cloud-native data management platform solving multi-hybrid workloads Best of breed products catered for Analytics, Data Governance & Privacy, Application Integration and Hyperautomation, and Business 360 initiatives for Chief Data Officer, Chief Data Architect, Chief Privacy Officer, etc. Vendor neutrality - deep partnerships with key players in data, data infrastructure and BI space - Snowflake, Azure, AWS, GCP, Databricks, Tableau, Salesforce 5,000+ global customers with ample land and expand opportunities Barriers to entry to migrate complex PowerCenter integration mappings Informatica. Proprietary. Informatica#1919 Financial Highlights O Informatica. Proprietary. Informatica#2020 Q1′22 Financial Highlights Rapid Growth at Scale Significant Expansion with Existing Customers Strong Large Customer Momentum Proven Unit Economics 32% 113% 164 81% YOY SUBSCRIPTION ARR GROWTH SUBSCRIPTION NET REVENUE RETENTION CUSTOMERS > $1M SUBSCRIPTION ARR NON-GAAP GROSS MARGIN Note: All figures are as of Q1 FY22 and, are presented on a non-GAAP basis. Please see the appendix for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents and for the calculation of certain other financial metrics Informatica. Proprietary. Informatica#2121 Strong Growth With Increasing Mix Shift to Subscription Revenue Dollars in millions O Informatica. Proprietary. $334 $25 $9 $158 $142 Q1 2021 Quarterly Revenue $342 $27 $7 $167 $141 Q2 2021 Maintenance $362 $28 $3 $194 $138 Q3 2021 Subscription $407 $29 $10 $230 $138 Q4 2021 License Services $362 $29 $3 $198 $133 Q1 2022 Subscription Revenue is 55% of Total Revenue and grew 26% YOY 91% of Total Revenue is recurring Informatica#22Accelerating ARR Growth at Scale 22 Maintenance Subscription Subscription ARR % Total Total ARR YOY Growth Rate Dollars in millions $1,195 $551 Informatica. Proprietary. $643 Q1 2021 54% 15% Total ARR $1,240 $554 $686 Q2 2021 55% 16% $1,287 $552 $736 Q3 2021 57% 17% $1,360 $558 $802 Q4 2021 59% 17% $1,397 $548 $849 Q1 2022 61% 17% Majority of ARR from subscription Subscription growth rate driven by product portfolio innovation and other commercial initiatives Maintenance declining YoY with migration to cloud emerging as a net new opportunity for subscription Subscription NRR 113% as of 01 2022 Informatica'#2323 High-Growth Subscription ARR Subscription ARR Subscription ARR YOY Growth Dollars in millions O Informatica. Proprietary. $643 Q1 2021 36% $686 Q2 2021 34% $736 Q3 2021 36% $802 Q4 2021 32% $849 Q1 2022 32% We believe Subscription ARR is a better indicator of business growth Subscription revenue is subject to ASC 606 and subscription mix variances Informatica#24Cloud ARR Growth Accelerating at Scale Cloud ARR YOY Growth 24 $240 Q1 2021 36% Dollars in millions Informatica. Proprietary. $264 Q2 2021 39% Cloud ARR $287 Q3 2021 44% $317 Q4 2021 40% $343 Q1 2022 43% Cloud ARR growth accelerating with a Q1 2022 YOY growth rate of 43% Cloud ARR growth continues to accelerate YoY driven by expanded IDMC offerings and supported by the macro trend of cloud modernization Informatica#2525 Large Customer Momentum Customers > $100K Subscription ARR 1,421 Q1 2021 1,498 Q2 2021 Informatica. Proprietary. 1,577 Q3 2021 1,660 Q4 2021 22% YOY Growth 1,732 Q1 2022 Customers > $1M Subscription ARR 109 Q1 2021 116 Q2 2021 127 Q3 2021 153 Q4 2021 50% YOY Growth 164 Q1 2022 Informatica®#2626 Consistent Net Retention Rate 114.7% Q1 2021 Subscription Net Retention Rate¹ Informatica. Proprietary. 115.7% Q2 2021 115.9% Q3 2021 1 Net retention rate is calculated by dividing the contract value for Subscription ARR from the same set of customers at the end of a period compared to the prior year 114.1% Q4 2021 112.9% Q1 2022 Informatica#2727 Landing Strategic Customers $193 Q1 2021 Average Subscription ARR per Customer¹ Informatica. Proprietary. $198 Q2 2021 1 Subscription ARR represents the portion of ARR only attributable to our subscription contracts $208 Q3 2021 $221 Q4 2021 19% YOY Growth $231 Q1 2022 Informatica#2828 Operating Leverage While Investing in Growth Non-GAAP Operating Expenses as % of Revenue¹ 8% 18% 32% Q1 2021 13% 15% 30% Q1 2022 S&M R&D = G&A uFCF and Non-GAAP Operating Margin as % of Revenue ¹, 2 29% 25% 24% 23% Q1 2021 Q1 2022 -Unlevered Free Cash Flow (UFCF) -Non GAAP Operating Margin Leverage Drivers ● Economies of scale Net retention on growing subscription base ¹Non-GAAP operating expenses and margin excludes the effect of stock-based compensation expense-related charges, including employer payroll items on employee stock transactions, amortization of acquired intangibles, expenses associated with acquisitions, and strategic investments. Please see appendix for reconciliation to most directly comparable GAAP measure. 2Unlevered free cash flow (after-tax) is calculated as operating cash flow less purchases of property and equipment, and is adjusted for interest payments, equity compensation payments, sponsor management fees, legal settlements, restructuring costs, and executive severance. Please see appendix for reconciliation to most directly comparable GAAP measure. O Informatica. Proprietary. Informatica#29Cloud Migration Opportunity Over next few years, self- managed likely to start migrating to cloud 29 Dollars in millions Informatica. Proprietary. Total ARR $1.4B Cloud $343 Self-Managed Subscription $506 Maintenance $548 Q1 2022 Cloud Migration 2% Cloud Migration 98% Maintenance ARR Q4 2020 to Q1 2022 To date, Cloud and Self- managed subscription growth driven by new products and new workloads Migration of maintenance to Cloud IDMC just beginning (2.2% of installed base) Initial migrations indicate that maintenance ARR converts to cloud ARR at a 2.0x ratio Informatica#3030 Consistent High Non-GAAP Gross Profit Margins Despite Mix Shift 82% Q1 2021 Non-GAAP Gross Profit Margin¹ 82% Q2 2021 83% Q3 2021 ¹ Please see appendix for reconciliation to most directly comparable GAAP measure Informatica. Proprietary. 82% Q4 2021 81% Q1 2022 Consistent gross margins despite the continued shift from maintenance to subscription ARR Consistently high despite an increasing mix of cloud versus on-premises Informatica#3131 Adjusted EBITDA and Unlevered FCF Ramping as Subscription Transition Nears Completion Adjusted EBITDA¹ and Adjusted EBITDA Margin 27% $89M Q1 2021 O Informatica. Proprietary. 25% $89M Q1 2022 Unlevered FCF 2 and Net Leverage Ratio 5.8x $95M Q1 2021 uFCF $87M 3.4x Q1 2022 -Net Leverage Ratio ¹Adjusted EBITDA is a non-GAAP financial measure and is calculated as GAAP operating income/(loss) as adjusted for stock-based compensation, amortization of intangibles, equity compensation related payments, one-time fees related to acquisitions, costs related to discrete payments for legal settlements, restructuring costs and executive severance, one-time impairment on restructured facilities, sponsor-related costs and depreciation. See appendix for reconciliation to most directly comparable GAAP measure. 2 Unlevered Free Cash Flow (after-tax) is calculated as operating cash flow less purchases of property and equipment, and is adjusted for interest payments, equity compensation payments, sponsor management fees, legal settlements, restructuring costs, and executive severance. See appendix for reconciliation to most directly comparable GAAP measure. Informatica#3232 Financial Outlook GAAP Total Revenues % Growth Y/Y at Midpoint Total ARR % Growth Y/Y at Midpoint Subscription ARR % Growth Y/Y at Midpoint Cloud ARR % Growth Y/Y at Midpoint Non-GAAP Operating Income ¹ Unlevered Free Cash Flow (after-tax) ¹ 1 Q2 2022 $358 - 368m ~6% $875 - 885m ~28% $365 - 371m ~40% $44 - 51m Full-Year 2022 $1,585 1,605m ~10% New range of $1,520 – 1,550m Previous range of $1,510 – 1,540m ~13% $990 - 1,010m ~25% $438 - 448m ~40% $325 345m 1 Non-GAAP financial measures. A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Informatica. Proprietary. $323 - 343m Informatica#3333 Long-term Target Model (Non-GAAP) % of Total Revenue / ARR Subscription ARR % Gross Margin Sales and Marketing Research & Development General & Administrative Non-GAAP Operating Income Unlevered Free Cash Flow (after- tax) 1 FY20191¹ Please see appendix for reconciliation to most directly comparable GAAP measure Informatica. Proprietary. 44% 83% 36% 17% 6% 24% 14% FY2020¹ 52% 84% 33% 17% 6% 28% 26% FY2021¹ 59% 82% 34% 17% 7% 24% 23% Long-term >90% 82-84% 24-26% 14-16% ~5% 36-39% 30-32% Informatica#3434 Appendix O Informatica. Proprietary. Informatica#35Cloud vs. Self-Managed 2 Year Contract Term Illustrative Example 35 Contract Deal ($000s) Subscription ARR Revenue COGS Gross Profit Gross Margin $ ● 2-Year Cloud ($1M ACV, $2M TCV) Total FY23E 1,000 $1,000 $ 1,000 $ 2,000 200 $ 800 $ 80% FY22E 1,000 $ 1,000 200 $ 800 $ 80% 400 $ 1,600 $ 80% Informatica. Proprietary. BQ22 1,000 42 8 34 81% Deal terms: 2 year contract; $1M annual contract value (ACV); $2M total contract value (TCV) ARR is constant at $1M per year for both Cloud and Self-Managed $ $ $ 2-Year Self-Managed ($1M ACV, $2M TCV) FY22E FY23E Total BQ22 1,000 $ 1,000 $ 1,000 $1,000 1,700 $ 300 $ 2,000 $ 1,412 200 $ 200 $ 400 $ 8 $ 1,500 $ 100 $ 1,600 $ 88% 33% 80% 1,404 99% Revenue: Cloud revenue recognition is ratable over the 2 year period, $1M each year Self-managed revenue recognition is accelerated in year 1, with 70% of the TCV value being recognized up front ($2M x 70% = $1.4M), and the remaining 30% being recognized ratably over the 2 years ($2M x 30% = $0.6M/2 years = $0.3M per year); for a total of $1.7M in year 1 Booking Quarter Revenue (BQ22): Assumes order is booked on day 75 of the booking quarter Cloud revenue recognition is ratable over the 2 year period, $42K for half a month of revenue Self-managed revenue recognition is accelerated in year 1, with 70% of the TCV value being recognized up front ($2M x 70% = $1.4M), and the remaining 30% being recognized ratably over the 2 years ($2M x 30% = $0.6M/2 years = $0.3M per year/12 months/2 = $13K); for a total of $1.4M in the booking quarter COGS is constant at the example rate of 80% Gross Margin each year; Booking Quarter impact estimated as half a month of COGS Informatica#36Cloud vs. Self-Managed 3 Year Contract Term Illustrative Example 36 Contract Deal ($000s) Subscription ARR Revenue COGS Gross Profit Gross Margin ● $ 3-Year Cloud ($1M ACV, $3M TCV) FY23E FY24E Total 1,000 $1,000 $ 1,000 $ 1,000 $ 1,000 $ 3,000 $ 200 $ 200 $ 600 $ 800 $ 2,400 $ 80% 800 $ 80% 80% FY22E 1,000 $ 1,000 $ 200 $ 800 $ 80% BQ22 1,000 42 Deal terms: 3 year contract; $1M annual contract value (ACV); $3M total contract value (TCV) ARR is constant at $1M per year for both Cloud and Self-Managed Informatica. Proprietary. 8 34 81% Booking Quarter Revenue (BQ22): Assumes order is booked on day 75 of the booking quarter Cloud revenue recognition is ratable over the 3 year period, $42K for half a month of revenue 3-Year Self-Managed ($1M ACV, $3M TCV) FY22E FY23E FY24E Total 1,000 $ 1,000 $ 1,000 $ 1,000 $ 2,200 $ 400 $ 400 $ 3,000 $ 200 $ 200 $ 200 $ 600 $ 2,400 $ $ 200 $ 200 $ $ 2,000 $ 91% 50% 50% 80% Revenue: Cloud revenue recognition is ratable over the 3 year period, $1M each year Self-managed revenue recognition is accelerated in year 1, with 60% of the TCV value being recognized up front ($3M x 60% = $1.8M), and the remaining 40% being recognized ratably over the 3 years ($3M x 40% = $1.2M/3 years = $0.4M per year); for a total of $2.2M in year 1 BQ22 1,000 1,817 8 1,809 99% Self-managed revenue recognition is accelerated in year 1, with 60% of the TCV value being recognized up front ($3M x 60% = $1.8M), and the remaining 40% being recognized ratably over the 3 years ($3M x 40% = $1.2M/3 years/12 months/2 = $17K); for a total of $1.8M in the booking quarter COGS is constant at the example rate of 80% Gross Margin each year; Booking Quarter impact estimated as half a month of COGS Informatica#3737 GAAP to Non-GAAP Reconciliations (in thousands) GAAP net loss Stock-based compensation Amortization of intangibles Equity compensation Restructuring, acquisition and other charges Executive severance Sponsor-related costs Income tax effect Non-GAAP net income Informatica. Proprietary. Three Months Ended March 31, 2021 2022 $ (3,186) 29,275 47,798 83 33 === (16,108) $ 57,895 $ (1,995) 2,577 61,825 (238) 333 850 500 (13,415) $ 50,437 Informatica#3838 GAAP to Non-GAAP Reconciliations (in thousands) GAAP income (loss) from operations Stock-based compensation Amortization of intangibles Equity compensation Restructuring, acquisition and executive severance Sponsor-related costs Non-GAAP income from operations Non-GAAP operating margin (% of total revenue) Informatica. Proprietary. Three Months Ended March 31, 2021 2022 $ 6,238 29,275 47,798 83 T T $ 83,394 23% $ 18,010 2,577 61,825 (283) 333 500 $ 83,007 25% Twelve Months Ended December 31, 2020 2021 $ 59,906 45,017 245,895 (10) 128 1,644 $ 352,580 24% $ 20,787 12,044 287,767 18,210 31,217 2,000 $ 372,025 28% 2019 $ (64,043) 15,409 323,626 34,352 749 2,000 $312,093 24 % Informatica#3939 GAAP to Non-GAAP Reconciliations (in thousands) GAAP gross profit Stock-based compensation Equity compensation Amortization of acquired technology Non-GAAP gross profit Non-GAAP gross margin (% of total revenue) Informatica. Proprietary. March 31, 2022 $ 278,548 4,575 18 9,137 $ 292,278 81% Three Months Ended September 30, 2021 $ 281,225 December 31, 2021 $ 311,924 4,746 8 18,013 $ 334,691 82% 302 11 18,353 $ 299,891 83% June 30, 2021 $ 262,623 241 13 18,496 $ 281,373 82% March 31, 2021 $ 256,284 239 18 18,599 $ 275,140 82% Informatica#4040 GAAP to Non-GAAP Reconciliations (in thousands) GAAP gross profit Stock-based compensation Equity compensation Amortization of acquired technology Non-GAAP gross profit Non-GAAP gross margin (% of total revenue) Informatica. Proprietary. 2021 Twelve Months Ended December 31, $ 1,112,056 5,528 50 73,461 $ 1,191,095 82% 2020 $ 1,005,111 916 2,935 98,458 $ 1,107,420 84% 2019 $ 967,603 1,723 3,971 115,544 $ 1,088,841 83 % Informatica#4141 GAAP to Non-GAAP Reconciliations (in thousands) GAAP research and development Stock-based compensation Equity compensation Non-GAAP research and development % of total revenue GAAP sales and marketing Stock-based compensation Equity compensation Restructuring costs and executive severance Non-GAAP sales and marketing % of total revenue Informatica. Proprietary. Three Months Ended March 31, 2022 $ 75,123 (9,399) (7) $ 65,717 18% Three Months Ended March 31, 2022 $ 128,952 (7,589) (16) 2021 $ 121,347 33% $ 50,904 (770) (9) $ 59,125 18% 2021 $ 108,526 (857) 388 === $ 108,057 32% 2021 Twelve Months Ended December 31, 2020 $ 260,660 (11,114) (39) $ 249,507 17% 2021 Twelve Months Ended December 31, $ 496,816 (12,889) 416 $ 230,151 (2,531) (8,291) $ 219,329 17% $ 484,343 34% 2020 $ 451,839 (3,035) (3,720) (8,197) $ 436,887 33% 2019 $234,879 (4,367) (11,128) $ 219,384 17% 2019 $ 486,298 (3,342) (7,755) === $ 475,201 36% Informatica#4242 GAAP to Non-GAAP Reconciliations (in thousands) GAAP general and administrative Stock-based compensation Equity compensation Restructuring costs and executive severance Sponsor-related costs Non-GAAP general and administrative % of total revenue Informatica. Proprietary. Three Months Ended March 31, 2022 $ 29,574 (7,712) (42) $ 21,820 6% 2021 $ 26,285 (711) (123) (500) $ 24,951 7% 2021 Twelve Months Ended December 31, 2020 $ 122,112 (15,486) (317) (1,644) $ 104,665 7% $ 93,548 (5,562) (3,263) (3,544) (2,000) $ 79,179 6% 2019 $ 101,638 (5,977) (11,498) (2,000) $ 82,163 6% Informatica#4343 Adjusted EBITDA Reconciliation (in thousands) GAAP net loss Income tax expense (benefit) Interest income Interest expense Loss on debt refinancing Other income (expense), net Stock-based compensation Amortization of intangibles Equity compensation Restructuring, acquisition and executive severance Sponsor-related costs Depreciation Adjusted EBITDA % of total revenue Informatica. Proprietary. Three Months Ended March 31, 2022 $ (3,186) 1,185 (366) 12,825 (4,220) 29,275 47,798 83 T I 5,725 $ 89,119 25% 2021 $ (1,995) 811 (280) 35,799 (16,325) 2,577 61,825 (238) 333 500 6,345 $ 89,352 27% Trailing Twelve Months ("TTM") Ended March 31, 2022 $ (101,120) 24,413 (1,299) 109,465 30,882 (14,207) 71,715 231,868 311 (205) 1,144 24,219 $ 377,186 26% 2021 Twelve Months Ended December 31, $ (99,929) 24,039 (1,213) 132,439 30,882 (26,312) 45,017 245,895 (10) 128 1,644 24,839 $ 377,419 26% 2020 $ (167,887) (22,321) (2,254) 149,445 37,400 26,404 12,044 287,767 18,210 31,217 2,000 27,586 $ 399,611 30% 2019 $ (183,225) (22,996) (4,062) 161,877 1,085 (16,722) 15,409 323,626 34,352 749 2,000 22,732 $ 334,825 26% Informatica#4444 Unlevered Free Cash Flows (in thousands, except percentages) Total GAAP revenue Net cash provided by operating activities Less: Purchases of property, plant, and equipment Add: Cash paid for interest Add: Equity compensation payments Add: Executive severance Add: Restructuring costs Add: Sponsor-management fees Unlevered Free Cash Flows (after-tax) Unlevered Free Cash Flows (after-tax) margin (% of total revenue) Informatica. Proprietary. Three Months Ended March 31, 2021 $ 333,713 $ 64,948 (738) 28,158 440 578 1,407 500 $ 95,293 2022 $362,347 $ 70,155 (644) 13,678 180 3,919 207 === $ 87,495 24 % 29% Twelve Months Ended December 31, 2020 2019 $ 1,306,530 $ 3,138 (29,688) 146,601 39,836 2021 $ 1,444,055 $ 228,683 (10,817) 103,243 1,196 4,628 3,579 1,644 $ 332,156 23 % $ 1,323,096 $ 167,754 (13,835) 143,833 26,654 31,006 2,000 $339,412 26% 2,000 183,757 14% Informatica#4545 Net Debt Reconciliation (in millions) Dollar Term Loan Less: Cash, cash equivalents, and short-term investments Total net debt Informatica. Proprietary. March 31, 2022 $ 1,875 (578) $ 1,297 December 31, 2021 $ 1,875 (496) $ 1,379 Informatica#46Thank you Informatica

Download to PowerPoint

Download presentation as an editable powerpoint.

Related